How rules have changed regarding how work in progress is shown in company accounts
Q:My accountant has told me that there are new rules for how we show work in progress in our company accounts. What has changed and how does this affect my business ?
A: Under UITF40, you now have to include unbiiled work in progress in your company accounts at selling price, not cost price as used to be the case. This means that you are bringing forward the profit on those jobs but Revenue and Customs have provisions to allow the extra Corporation Tax to be spread over 3 to 6 years , rather than having to pay it all at once, nine months after the company year end.